Share
1,053 Posts.
lightbulb Created with Sketch. 439
clock Created with Sketch.
17/07/19
11:36
Share
Originally posted by GCar:
↑
My notes from the call, iirc!: ------------------------------ Mt Cattlin: - 2 open mining faces; increases flexibility - Mining output greatly improved - They expected the high grade zones - Expecting ~1.15% grade for H2 - Basalt concentration slightly higher than expected - YOP designed to handle this - More precise mining methods + in-pit ore sorting - 1.4% head grade processed - 4-day maintenance shutdown early june (planned) - 56,500 DMT Spod Conc produced Q2, 35% increase on Q1 - Highest quality since operations restarted - 6% average Li conc - +6% now being achieved with <1.2% iron oxide - Small trade off of grade with recovery - Further improvements due in H2: plenty of opportunities for this: Costs, processing efficiency (optical sorting, waste rejection) - Costs down 25% Q on Q - Q2 performance NOT a one-off - 29,439 tonnes shipped Q2 - 3rd shipment delayed into Q3 - Q3 shipping guidance 60-70kt - Q3 production guidance: 45-55kt - HIGH quality product - Mt Cat in SOLID position SDV: - Development works continue - Pond lining to commence in Q3 - 40 people recently trained in pond lining - Test program underway - De-risking continues - Base case work underway - 2 x Solvent extraction processes being investigated - 2 x Ion exchange processes being investigated - Good results so far - Q4 target for developing an updated project execution strategy and timeline - Simon to site (SDV) next week - 3 x recent senior appointments - Catamarca office opened in Q2 James Bay: - Feasibility work continued as planned in Q2 - Increasing degree of confidence - Phase 2 test work underway for downstream operations Both WILL be developed. Simon accepted this challenge when he took on this role. Alan Rule: - $176.3m closing cash June 30, No debt - $23.3m AUD ($16.4m USD) A40 + LPD - $55.2m USD tax paid on Posco transaction - USD/Peso exchange rate reduced this tax payment by $10m - Inventory at June 30: 59kt Spod conc. - Equivalent to about $20m USD in inventory working capital - to be returned in H2, with $$ received to be higher than this $20m ($20 was @ cost) - $203.3m cash and liquid assets at June 30 Questions: Matt/Nick? @ Credit Suisse: June QTR recovery?: - Not sure yest about recovery for Q3, will be less than 70%, likely around 60-65% Sales Q3 confidence?: - Quite confident, 22kt locked in - 2 more shipments contracted - Guidance remains Inventory grade at site?: - No risk of degradation - Grade varies, some <6%, some ~6% - Can blend as required to meet customer targets Downstream processing in China?: - Working with contact in china to understand options etc - Nothing binding in place - Continue to explore - INTEND to diversify downstream - Key focus remains SDV and JB Reg Spencer @ Cannacord: Inventory - 2nd half weighted, how to unwind working capital?: - Will NOT lower production output in H2 - Sales to exceed production for Q3 - Main strategy focussed on marketing - Q3: remain confident - Sales weighted to Q4: early indications remain on track SDV Capital budget?: - Previous guidance of ~$20m USD for capital spend for the year - Will commence(?) test work once ponds are lined and filled etc - Will remain within $20m for the year - Asround $3m capex spend in Q2 Peter Arden @ Bell Potter: Mining in Q2, High-grade zones? Were they expected?: - Yes, did anticipate the high-grade zones - The amount of basalt and its infiltration needs to be determined - About 1.15% grade will be fairly consistent for Q3 and Q4 In-Pit sorting?: - Blast design work to assist separation of ore and waste - Has had greater focus and it is still improving Glyn Lawcock @ UBS: Spod pricing: trend and trajectory?: - (A Tse) Spod will have some correlation to chemicals price - Carbonate: ~flat lately - Hydroxide: has been trending downwards and converging with carbonate - Cautious optimism in China - Policy initiatives in June/July around subsidies - More stringent emissions standards - Spod prices vary due to different converter scenarios e.g. stockpiles, refurbishment, etc - it is a CASE-BY-CASE basis - Sales for H2 contracted, with prices fixed in June for the H2 sales No further questions?! (I was waiting for Col or ASB??!!) - Simon to visit Argentina and Canada in the coming weeks! -------------------------------- Hope that helps!! Cheers GCar
Expand
Share price currently $1.30....